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History And Strategic Management Of BMW

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History And Strategic Management Of BMW
History and strategic management of BMW
Bayerische Motoren Werke AG (BMW) is a German manufacturer of passenger cars, motorcycles and engines, as well as a provider of financial services. The company was founded in 1916 under the name of Bayerische Flugzeugwerke AG (BFW) with the purpose of manufacturing airplanes, but later changed its business focus towards car production. BMW’s stock is listed on the Frankfurt Stock Exchange and has been included in the German blue chip stock market index DAX since its first composition in 1988. Today, BMW counts 96,230 employees worldwide. While its revenues amounted to EUR 50.68 billion in 2009, its net income reached EUR 210 million. Appendices 1 and 2 provide further details about the company’s financial situation. BMW is one of the ten biggest car manufacturers on global scale. Its brands BMW, Mini and Rolls Royce are found among the strongest premium brands in the automotive industry. Car models range from small-sized cars up to high-end luxurious limousines. In 2009, BMW sold more than one million passenger cars worldwide. In total, 16 manufacturing plants have been established in Germany, Austria, United Kingdom, South Africa, USA and China. These are rounded up by assembling plants in Russia, Egypt, India, Thailand and Indonesia. Only 47% of automobile sales can be attributed to Europe, USA and Japan, demonstrating BMW’s worldwide strong presence.
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Company History
Until 19451, [4]
Soon after the end of World War I in 1919, certain regulations of the Versailles Armistice Treaty forced BMW to bring its aircraft and aircraft engine production to a halt. As a consequence, BMW started


References: BMW Group (2009): Research and Development Network – From the Original Idea to Final Innovation in a Networked World, accessible on www.bmwgroup.com. BMW Group (2010a): BMW Geschichte, accessible on http://www.bmw.de/de/de/insights/history/overview.html. BMW Group (2010b): Annual Report 2009, accessible on www.bmwgroup.com. Boutellier, R., Gassmann, O. and Zedtwitz, M. (2008): Organizing Virtual R&D Teams, in: Managing Global Innovation, Part I, pp Criscuolo, P. and Narula, R. (2007): Using multi-hub Structures for International R&D:Organisational Inertia and the Challenges of Implementation, in: Datamonitor (2010): Industry Profile – Global Automobiles & Components. Gassmann, O. and Zedtwitz, M. (1999): New concepts and trends in international R&D organization, in: Research Policy, Volume 28, pp. Hauschildt, J. and Kirchmann, E. (2001): Teamwork for innovation – the “troika” of promotors, in: R&D Management, Volume 31, Issue 1, pp Kuemmerle, W. (1997): Building Effective R&D Capabilities Abroad, in: Harvard Business Review, Volume 75, Issue 2, pp Porter, M. (2008): The Five Competitive Forces that Shape Strategy, in: Harvard Business Review, Volume 86, Issue 1, pp Pries, L. (2007): The BMW-Family – From a Regional Carmaker to a Global Premium Player, accessible on http://www.gerpisa.univ-evry.fr/15.rencontre/ Stahl, M. and Bergfeld, M. (2008): BMW Group: Strategic Framework for Global Innovation to Enhance the Efficiency of Global R&D, in: Managing Global Wallentowitz, H., Freialdenhoven, A. and Olschewski, I. (2009): Strategien in der Automobilindustrie – Technologietrends und Marktentwicklungen, published Wikipedia (2010a): DAX, accessible on http://de.wikipedia.org/wiki/DAX. Wikipedia (2010b): BMW, accessible on http://de.wikipedia.org/wiki/BMW.
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